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Conversion Optimizer can help you hit CPA targets (not just volume)

Published: June 3, 2014

Author: Kaelee Heuschkel

We all want more conversions! There are many strategies to fine-tune bids in order to maximize conversions while meeting client goals. I am now a huge fan of Conversion Optimizer when a client is focusing on CPA targets.
This useful Google bid tool has been highly effective in stabilizing CPA while maintaining most conversion volume. In order to use this Bidding Strategy, you must have 15 Conversions in the past 30 days and have somewhat stable conversion volume. Once your campaign is eligible, you can change your Campaign Setting by selecting “Focus on conversion” and setting your CPA target.
bid strategy
It will take some time for things to stabilize in your account. Be mindful that this algo is taking into account various unknown factors in order for your campaign to perform at your CPA target. Do not freak it out with radical changes to the CPA target. Slow tweaks are the way to go!
Real-life example (lead gen client): in January these keywords were focusing on Average Position. We were increasing bids as needed to be in top position. We saw an overall high CPA with good conversion volume; however, we were paying too much for each conversion to meet goals. At this point we combined these keywords into one campaign (to meet the conversion volume requirements for Conversion Optimizer). We immediately saw a drop CPA and conversions, but this was mostly due to seasonality.  Through March and April, conversion volume increased back up to the level we saw in January, which is amazing for this particular industry. With CO, our CPA has stabilized just below our $350 CPA target with favorable conversion volume.
CPA Target
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